With nearly two in five asset managers reportedly looking at Brexit relocations, the latest from the European Banking Association (EBA) might make the remaining three fifths re-evaluate their position. The EBA’s contradiction of the Bank of England, saying that UK assets could carry higher capital charges after the UK leaves the EU, continues to ramp up the pressure for financial institutions to prepare for a hard Brexit. The cynics amongst us might suggest that the EBA is looking to encourage support for their own post-Brexit move to a new home in Paris.
It seemed like better mood music coming over from France, however, with the French financial regulator deciding not to change the delegation rules. Whilst this may be some immediate reprieve in terms of our relationship with the EU post-Brexit, the ongoing lack of clarity and slow progress is creating huge frustration across the financial services industry. The future framework for UK-based financial services with the rest of EU seems as opaque and confused as ever. Let’s hope it’s not the end investor that loses out again with the industry so distracted by the possible need to relocate and find the resources to do so.
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